3 Reasons Growth Investors Will Love C.H. Robinson (CHRW)

Core Insights - Growth investors focus on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging [1] - The Zacks Growth Style Score helps in identifying promising growth stocks, with C.H. Robinson Worldwide (CHRW) being a recommended stock due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being highly desirable [4] - C.H. Robinson's projected EPS growth is 11.4% this year, significantly outperforming the industry average of -0.3% [5] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating efficiency in generating sales [6] - C.H. Robinson has an S/TA ratio of 3.27, compared to the industry average of 0.81, indicating superior efficiency [6] Sales Growth - Sales growth is another critical factor, with C.H. Robinson expected to achieve a sales growth of 1.8% this year, while the industry average is 0% [7] Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - C.H. Robinson's current-year earnings estimates have been revised upward, with a 1.9% increase in the Zacks Consensus Estimate over the past month [9] Conclusion - C.H. Robinson has earned a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [10]